Hamilton, Madison, and Jay

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Location: Mesa, Arizona, United States

Who are we? We're a married couple who has a passion for politics and current events. That's what this site is about. If you read us, you know what we stand for.

Wednesday, November 26, 2008

More revelations about Charlie Rangel and his tax-cheating ways

While this will bring a smile to your face, just remember that the Democrats won't toss him from his seat, nor will they toss him from the House Ways and Means Committee. Yeah, we can use ol' Charlie here as a pinata because it's fun, but it'd be a helluva lot better if he was going to be held to account for the tax evasion he's committed. From Sam Dealey at US News:

This morning's papers delivered two good thumpings to Charlie Rangel, the good-time jolly-wolly Democrat who likes to crack wise from the chairman's seat on the tax-writing House Ways and Means Committee.

First there is the Washington Post's revelation that Rangel inappropriately claimed a tax break on his D.C. townhouse by claiming it was his primary residence. The five-year charade only netted the congressman from Harlem about $1,500, which is relatively small potatoes. But it nicely dovetails with two other Rangel escapades of late: That he failed to pay taxes on $75,000 in rental income from his luxury beach villa in the Caribbean because he—ahem—didn't know it was income; and that he scored several rent-stabilized apartments in New York, each of which he must claim as his primary residence. Taken all together, it looks like the top tax-writer in Congress is a tax cheat.

But don't think Rangel is selfish. As the New York Times
reports today, Rangel was happy to turn tricks for others. After years of going after U.S. corporations for the perfectly legal practice of offshoring, in 2007 Rangel abruptly changed course, killing a bill that would have subjected these corporations to U.S. taxes.

Among those who benefited was Eugene Isenberg, chairman of Nabors Industries, an oil-drilling company that was the poster-child for offshoring in 2002. At the time Rangel killed the bill, Mr. Isenberg pledged $1 million to the "Charles B. Rangel School of Public Service" at the City College of New York. (The House Ethics Committee already is looking into whether Rangel inappropriately solicited donations to his vanity shrine.)

As the Times reports, Rangel "said that the pledge from the Nabors chief executive, Eugene M. Isenberg, one of the largest the school received, played no role in his decision to protect the loophole, and maintained that he did not even know about it until this summer, more than a year later." Well of course Rangel says that.

Alas, "Mr. Rangel met with Mr. Isenberg and a lobbyist for Nabors and discussed [the legislation] on the same morning that the congressman and Mr. Isenberg met to talk about the chief executive's potential support for the Rangel center." Oh, that meeting also took place on the very day that the offshore-taxation issue came up before his committee.

The good news for Rangel is that President Bush seems to be in a
pardoning mood these days. And with Thanksgiving just around the corner, maybe Rangel will be the lucky turkey this year.

And we thought that the only tax-cheater we'd hear about this year was Al Franken. Guess not, but this does raise more than just one eyebrow, and it'd be nice to see John Boehner put out a call to have Rangel ousted from his committee. After all, why keep a tax-cheat on the committee that writes the tax laws? Seems sort of a conflict of interest, don't you think? Alas, we know that won't happen. Even if we managed to get some Blue Dogs on our side, and agree that Rangel needs to go, it won't be enough to get rid of him. He'll get a slap on the wrist and a "don't-do-this-again" from the Ethics Committee, and he'll be allowed to go on his merry way; probably without having to pay back the taxes he evaded.

HT to Professor Glenn Reynolds

Publius II


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